Meme-inspired Dogecoin (DOGE) cryptocurrency has seen an unprecedented rise and has made a splash in the crypto market since its commencement. Dogecoin increased 542,477.79 percent from $0.00008547 in May 2015 to $0.7376 in May 2021, an all-time high.
While having declined slightly by 37.12% since that high, Dogecoin is a case in point of early price trends being a potentially valuable indication of the future potential of a cryptocurrency to rise.
The typical short-term DOGE price volatility spanned from $0.4482-$0.4835 in the last 24 hours. While there are such fluctuations, Dogecoin has proven to have a good long-term performance and is an interesting asset to invest in. By looking at these early price movements, one can see where this company’s growth is coming from.
Bullish Momentum Indicated by Dogecoin’s Price Structure
Dogecoin price prediction suggests that you need to take advantage of a robust support level as you protect against a possible loss. Dogecoin is priced at $0.447 now with a market cap of $65.38 billion. The total supply is also the circulating supply at 147.10 billion. Dogecoin is #7 on CoinMarketCap and thus is not considered a ‘small’ cryptocurrency.
For traders wanting to get in or out of the market, it’s known as key price levels. Dogecoin is nearing a key resistance level at $0.450 at this time. The first resistance level for DOGE/USD is represented by the high at $222, and the second resistance level is at $0.475 and $0.500. Dogecoin’s price structure and candlestick formations paint a positive picture of momentum behind this currency, all of which point to an optimistic investor viewpoint.
However, the downside of Dogecoin’s structure marks support levels at $0.300, $0.250, and $0.200, giving a bottom zone for bulls. However, the coin has also managed to maintain holding above the important 9-day and 21-day moving averages (MAs), indicating that the market is continuing to buy. The 9-day MA is currently above the 21-day MA, for this to happen the 9-day MA needs to close above the 21-day, this indicates that we have a short term bullish cross over, and therefore indicate further upside momentum.
The daily chart of Dogecoin confirms a clearly ascending channel, which is a sign of a strong bullish trend. On the positive side, if you’re a short-term trader, Dogecoin is trading close to the upper limit of this channel. Ultimately, the market is set to move based on whether DOGE can breach the resistance levels of at $0.450 and beyond. If it does, there can be a continuation in higher levels, taking us into $0.600, $0.650, and even $0.700.
Impact of Moving Averages on Dogecoin’s Short-Term Outlook
Volume is the key to not losing upward momentum, as a volume that increases is bullish, confirming trends, while a volume that weakens is a possible breakout. Bearish volume surges should be eyed by traders as potential signals for breakdown and selling pressure.
Another ongoing trend in the same direction of the bullish trend seems to be the DOGE/BTC pair since it is close to 450 SAT. A short-term positive view is highlighted by rising above the 9-day moving average at 440 SAT while the 21-day moving average at 427 SAT remains below it. Dogecoin has to break the resistance at 570 SAT if we see stronger upward momentum.
Nevertheless, if the 21-day SMA is not maintained above, that could trigger bearish pressure and retest of the 345 SAT support level. However, we see the consolidation above both MAs, indicating that bulls are in the driver’s seat for now.
A notable sheep in the cryptocurrency shepherds identified a bullish pennant breakout pattern on the 6hr for DOGE and it’s about to break out of it. Since there is such optimism around Dogecoin’s future price action, I expect this pattern to push Dogecoin upwards by some 30-40%. This setup could be a strong buying opportunity that traders should carefully follow.
The potential for Dogecoin to break, however, is when there is enough volatility in markets. Until we can see a confirmed breakout with increased volume growth, we have to be in the risk management mode.
Other emerging crypto projects are coming up in the market, including Wall Street Pepe ($WEPE), which has seen the bullish outlook of Dogecoin. Investors are taking notice of $WEPE, which has raised a remarkable $2.9 million to date. This project focuses on the community and wants to spoil it with staking rewards projected at 20k%, a good marketing budget and some community-driven initiatives. During a presale period, investors attend to high-risk, high-reward opportunities.
Conclusion
The main takeaway is that Dogecoin has good upward momentum as well as outstanding key resistance levels, so it would be a good idea for traders to take note. Nevertheless, the crypto market is very volatile, which generally calls for risk control strategies. The crypto landscape, however, still has plenty of potential and emerging projects like Wall Street Pepe continue to capture the zeitgeist.
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